Unravelling one of the Least Understood Industries at the Edge of Disruption

 Insurance-focused start-ups today have started revamping the traditional insurance-broker distributor model, and are now applying the omni-channel approach to offer self-directed services and personalised pricing.

Unravelling one of the Least Understood Industries at the

 Insurance-focused start-ups today have started revamping the traditional insurance-broker distributor model, and are now applying the omni-channel approach to offer self-directed services and personalised pricing.
fintech By FINTECH Books Contributor, Rashee Pandey Follow: @rasheepandey ‏ Changing consumer behaviour, new distribution channels and innovation in technology are reasons why InsurTech exists. Insurers understand that there is a big gap in customer expectation and user experiences within insurance products and services. According to a survey conducted by EY in 2014, 53% of their respondents said they do not trust their insurance providers. Swiss Re revealed that the UK population is significantly underinsured. Why? Because insurance in general is complicated. With a generation that is extremely used to non-digital ways of interacting with insurance providers, providing an easy-to-consume interface and an intuitive user experience is vital to get them on board as consumers. Hence, insurance-focused start-ups today have started revamping the traditional insurance-broker distributor model, and are now applying the omni-channel approach to offer self-directed services and personalised pricing. This is crucial especially to target millennials, who expect things to be available in real-time and on their fingertips 24 x 7. In an Accenture Global Claims Survey, 77% of insurance consumers said they are willing to provide more personal information to receive lower premiums. It was also noted that claims experience is fundamental in fostering a good relationship. If deemed cumbersome, consumers are more likely to switch to another provider along with sharing their “bad” experiences on social media. So how do we innovate? How do we provide the best possible product and service for the end consumer along with building a sustainable business model? The answer is collaboration. Insurance is a highly-regulated industry. They are the big, giant players who have been experts in their respective fields for centuries. They can bring in their expertise and knowledge of the industry know-hows like no other. Start-ups on the other hand are more agile, and have the ability to test and deploy more innovative solutions. So it is not all impossible. Incumbent insurers and innovators just have to innovate together. If you would like to learn more about FinTech please look at our video courses at FINTECHCircleInstitute.com